As the first post on this blog about creating, comprehending, and presenting Business Financial Models, it's only right to set a solid foundation and talk about having the 'right mindset'. Too many times in listening to start up or even early stage business owners, you get the notion that no thought was given during the concept stage of the business to truly give direction and focus. Nothing pays off like having a well thought strategy to help you navigate tough times as the business expands and grows. I recommend to business owners that they have a balance between taking action and taking time to think and create an effective plan of action. At times I even have to remind myself that you can get sucked into the never-ending abyss of analysis and research. Don't get me wrong, there's nothing wrong with doing an appropriate amount of analysis and research, but not to the point where it begins to hinder and impede action. To help you find the proper balance between conducting research and taking action, use the following 3 steps to give you guidance. Also check out my other blog, jerichobizfinance.com, for more info:
Step One: Consider the Costs
There's nothing worse than moving forward in a business venture and you or your team did not count the costs of going into and operating a business. This applies to both part and full time ventures. Time is a valuable resource that we all have a restricted amount of. Think about it... there are only so many hours in a day and this even gets reduced due to getting an adequate amount of rest and investing of quality time with family and friends. So, when you make the decision to start or operate a business, you need to ask yourself, "How will I do a better job of managing my time?" or "What am I willing to sacrifice?" Trust me, you will either do one or both.
Step Two: Find another Motivation Other Than $$$
I confess that I've fallen victim to the 'easy money' syndrome when it comes to starting and operating a business. It's nothing like experiencing your full earning potential as a business owner or principal when there's a direct connection to your activity and the dollars you earn. There's a caveat though: never allow yourself to become captivated and sold out to the dollar. Remember the truth that in order to gain something, something else must be released. In other words, if (and I hope you don't) you make money your all consuming passion for being in business, you will lose BIG TIME in life especially if you have a family. Keep your business in its proper place and learn to manage it as opposed to it consuming and managing you.
Step Three: Become a Info Sponge
Again I confess that I was a late comer to the party on this one. I thought that since I achieved a graduate degree in business and knew how to read and interpret business financial reports that I was certified to become a business owner. NOT TRUE AT ALL!!!! Some of the best info sources of practical and valuable business advise comes from the oddest of places and people. What I'm saying here is that you must train your mind to become enlightened to soaking up 'solid' wisdom all the time, every day. Truly, a wealth of resources exist in various forms especially now with the proliferation of the internet and the emphasis on sharing and connectivity. Take advantage and explore. Seek advice from those that have gone before you and can give you sound guidance and advice. Thank GOD for Amazon and the local bookstore!!!